Not enough to pay off my cards

Fran85

We have managed to borrow (off family, who are'nt asking for the money back) 7200 to pay off our debt, unfortunatly this isnt quite enough, we owe 10K is there anything we can do to pay off this other debt, loans etc are out of the question we already have a bad credit rating as we have missed loads of payments.
Hopefully someone can help

Thanks

Fran
xx

Clariman

Hi Fran. To successfully get out of debt, you need to fully understand how you got there in the first place. Often this is simply because people spend more than they earn and keep borrowing. If that is the case for you, then you need to rein back your spending and put some more of your income to pay off your debts each month.

Clariman

nickiboop

Hi

go onto the dealing with debt board and the lovely people there will help you !

Iamthesmartestmanalive

Write to all your lenders offering 72p in the pound for your debt stating that otherwise you will need to go down the insolvency route and they would likely get less

Whatever you do, do not take the money etc until they agree


If they dont agree you could either pay off the dearest finance and keep the cheaper ones and pay that off over a longer period or go down the road of insolvency although if you own assets etc this may not be the best option

I reckon though if you offer 72p in the pound for full and final settlement they would probably take it if they think it will make them more than going through a formal insolvency agreement

If you do do this when sending off your letters enclose earnings and outgoings etc to show that they are getting the best they will get and dont tell them you have the £7200 already, state you may be able to put in place to obtain it if it would clear your debt

The worst they can do is say no

BenL

Are the debts across a few cards?

If so use the money to pay for the cards with the highest apr then work at paying the others card(s) that attract less interest off over the coming years.

Have you got any assets to sell that may have been purchased using the cards getting you into this debt?